Non-life insurances - Malaysia

Malaysia

The Non-life insurance market in Malaysia is projected to reach a market size (gross written premium) of US$7.01bn in 2024.
On average, Malaysians are expected to spend US$202.30 per capita in the Non-life insurance market in 2024.
The gross written premium is projected to grow at an annual rate of 1.29% from 2024 to 2028, resulting in a market volume of US$7.38bn by 2028.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium of US$3,371.0bn in 2024.
Non-life insurance in Malaysia is witnessing a surge in demand due to the increasing awareness about the importance of financial protection among the population.

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Analyst Opinion

The Non-life insurances market in Malaysia is experiencing a significant growth trajectory, driven by various factors shaping consumer preferences, market trends, and local circumstances.

Customer preferences: Customers in Malaysia are increasingly seeking comprehensive non-life insurance coverage to protect their assets and mitigate risks. With rising disposable income levels and awareness about the importance of insurance, individuals and businesses are showing a growing inclination towards policies that offer extensive coverage for property, health, and motor vehicles.

Trends in the market: One prominent trend in the Malaysian non-life insurance market is the increasing adoption of digital channels for purchasing insurance products. Insurers are leveraging technology to enhance customer experience, offer personalized policies, and streamline claims processes. Additionally, there is a growing demand for niche insurance products tailored to specific needs, such as cyber insurance and environmental liability coverage.

Local special circumstances: The regulatory environment in Malaysia plays a significant role in shaping the non-life insurance market. The regulatory framework ensures consumer protection, promotes market stability, and encourages innovation in product offerings. Moreover, the diverse demographic landscape of Malaysia, with a mix of urban and rural populations, influences the types of insurance products that are in demand across different regions.

Underlying macroeconomic factors: The economic growth of Malaysia, coupled with increasing urbanization and infrastructure development, is contributing to the expansion of the non-life insurance market. As individuals and businesses accumulate wealth and assets, there is a growing awareness of the need to safeguard these assets against unforeseen events. Furthermore, the country's stable political environment and efforts to promote financial literacy are fostering a favorable climate for the growth of the insurance sector.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.